Austrian Audit Office Criticizes Budget Package for Missing Reforms

The Austrian Court of Auditors (Rechnungshof) has criticised the newly adopted budget accompaniment laws, saying they lack structural reform measures. It called for comprehensive changes in health, long‑term care, pensions, education and energy sectors, and warned that the package increases tax law complexity instead of simplifying it.

Specific points of criticism include the introduction of a progressive corporate tax rate, the removal of tele‑work and workplace allowances, and the elimination of a tax exemption for zero‑emission vehicles – measures the audit office says will hinder electric‑car adoption and could reduce affordable used EVs. The proposed corporate‑tax increase to 24 % for earnings above one million euros is also flagged as a possible deterrent for foreign investors.

The audit also noted that the additional €80 million earmarked for a second compulsory kindergarten year from 2028 is insufficient to cover the extra costs, and it highlighted the brief review period that limited a thorough assessment of the package.